Intel Margins & Guidance Cause Cheers (INTC)

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Intel (NASDAQ:INTC) has reported earnings of $0.31 EPS and $10.1 Billion in revenues, versus First Call estimates $0.30 EPS and $9.62 Billion in revenues. It said microprocessor units set a record and the average selling price was flat; chipset and flash units set records, but motherboard sales were lower.  Gross margins came in at 52.4% and the company is offering 57% +/- 1% for the coming quarter.

It is putting next quarter revenues in a $10.5 to $11.1 Billion range compared to estimates for next quarter of $0.37 EPS & revenues $10.4 Billion.  This guidance for revenue and margins has shares up about 2.5% in after-hours trading.  Intel shipped more than 2 million quad core processors during the quarter.

Intel shares did close down 1% on the day but ahead of the numbers shares were within about 3% of 52-week highs, and are up almost 40% from the 52-week lows.  Intel’s conference call is at 5:30 PM EST today.  At $26.20 in after-hours trading this is only about 1% under those recent $26.58 highs.  Shares of smaller rival AMD are up marginally and the Semiconductor HOLDRs (AMEX:SMH) are indicated up about 0.5% at $36.35 in after-hours trading.

Jon C. Ogg
October 16, 2007